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Gold prices, cultural factors, and Covid-19 pandemic: An international analysis

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  • Beladi, Hamid
  • Trinh, Cong Tam
  • Chao, Chi-Chur

Abstract

Using data from 24 economies from 2010 to 2022, we demonstrated the significant effect of national culture, a missing factor, on physical, jewellery, and gold bar and coin demand. We also determined that the COVID-19 pandemic variable has a significantly positive influence on demand for gold in Confucian economies, jewellery in South Asian and Middle East economies, and bar and coin in Confucian economies. One key implication is that although the total global gold consumption tends to decline during economic turmoil, individuals in these countries tend to accumulate more gold because gold is considered as a safe haven asset during the Covid-19 pandemic. Our findings also provide useful implications for the development of the gold markets.

Suggested Citation

  • Beladi, Hamid & Trinh, Cong Tam & Chao, Chi-Chur, 2023. "Gold prices, cultural factors, and Covid-19 pandemic: An international analysis," Research in International Business and Finance, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:riibaf:v:66:y:2023:i:c:s0275531923001770
    DOI: 10.1016/j.ribaf.2023.102051
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    References listed on IDEAS

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    1. Daniel Hoechle, 2007. "Robust standard errors for panel regressions with cross-sectional dependence," Stata Journal, StataCorp LP, vol. 7(3), pages 281-312, September.
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    3. Salisu, Afees A. & Raheem, Ibrahim D. & Vo, Xuan Vinh, 2021. "Assessing the safe haven property of the gold market during COVID-19 pandemic," International Review of Financial Analysis, Elsevier, vol. 74(C).
    4. Apergis, Nicholas & Cooray, Arusha & Khraief, Naceur & Apergis, Iraklis, 2019. "Do gold prices respond to real interest rates? Evidence from the Bayesian Markov Switching VECM model," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 60(C), pages 134-148.
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    More about this item

    Keywords

    COVID-19 pandemic; Culture; Gold demand; Panel data;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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